juro wrote:is this common?
For legal reasons yes.
However, for federal income tax purposes, if Individual A owns LLC B and LLC C, both LLCs are disregarded for federal income tax purposes, and there are rent payments between the LLCs, the rent arrangement is ignored for federal income tax purposes.
Really it's just a cash movement from one pocket to another of the owner. There's no holistic revenue or expense.
juro wrote:this rent income gets reported on the owner's schedule E.
Probably not, but we don't have enough facts.